News Briefs

Ex-Gemstar president consent to SEC fraud injunction; Twinkies maker restates; Cisco chief spooks investors; and more.

Print

• Former Gemstar-TV Guide International Inc. president Peter Boylan agreed to settle SEC charges he took part in an illegal reporting scheme. As part of the settlement, Boylan will consent to a fraud injunction, without admitting or denying the allegations, and will pay $600,000 in disgorgement and civil penalties.

• Interstate Bakeries Corp. said it will delay filing its annual report because it must restate its financials for the second and third quarter of fiscal 2004. In late July, the maker of Twinkies announced that the SEC was conducting an informal inquiry. That followed the company’s announcement that is audit committee had retained Skadden, Arps, Slate, Meagher & Flom LLP to investigate the way the company sets its reserves for workers’ compensation and other purposes. The company’s audit committee has decided that a $40 million charge should be reflected in Interstate’s second fiscal quarter.

• Cisco Systems Chief Executive John Chambers spooked investors when he said in a conference call that customers are becoming very cautious. “Most of the CEOs that I talk with view the economy as growing at a modest level and are a little more cautious … than they were a quarter ago,” he reportedly said on a conference call with analysts.

• For the third time, a federal judge has delayed the start of the first criminal trial involving Enron Corp. employees and external bankers who served the company to give them another month to prepare, according to Reuters. The defendants are former Enron executives Dan Boyle and Sheila Kahanek and former Merrill Lynch bankers Daniel Bayly, Robert Furst, William Fuhs, and James Brown.

• At next year’s annual meeting, Borland Software Corp. will recommend that stockholders vote for a board-sponsored proposal to declassify its board of directors, thus ending staggered board terms.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>